Message from the President


A transitional year 2019 marked by new initiatives toward growth and profitability

In the second half of 2018, the company has felt the effects of the slowdown in the EU economy. Specifically, the defense sector, which had increased scrutiny of export rules, affecting the thermal imaging market segment. On the other hand, the US economy continues to be strong, and our business units have accounted for over 55% of the total revenue of the company. In particular there is growth in the power markets and the new High Temperature Co-fired Ceramic (HTCC) operations which are primarily supported by the thermal imaging market in North America.

For 2019, we continued to see softness in the EU economy in the first half of the year. At the same time, order entry in this geographic territory has improved noticeably, which is an indicator of better revenue in H2 and 2020. Several long-term agreements were concluded, which will ensure continued revenue streams for the future. Regarding the US markets, the strong performance of 2018 continues into 2019. We expect US revenues to exceed 60% of the total company revenues. The HTCC product line will double revenues compared to 2018.

2019 is a year when we will pursue our strategy of continuous and sustainable growth:
· initiatives to make Egide more agile and responsive with customers,
· Euros 2.57m capital raising completed in June to strengthen financial flexibility and provide extra funding for new growth initiatives, accelerated capex program and efficiency measures in France,
· implementation of a reorganization plan to improve profitability of operations in France.

We are currently accelerating initiatives to make the company the premier hermetic package supplier, and to be the partner of choice to our clients, offering expert service and advice to them globally. Being increasingly responsive to their rapidly evolving needs is essential to securing their trust and maintaining a long-term relationship.

Maintaining the trust of our stakeholders is also more important than ever during periods of profound change. One important way for us to build trust is by communicating transparently with all our stakeholders and listening to their views and expectations.

At Egide, we are mindful of this throughout the restructuring period we are launching which will increase the Group's resilience. To solve the recurring problems of profitability in France, we announced in July an action plan to reorganize and improve the operations in this area.

We will present this plan in detail during the Investors meeting in September.

This plan for the Europe zone, associated with the steady pursuit of the rise of activity in the US and a new dynamic sales approach, take time. We are aware of it, but we are committed to go in the right direction for the Group.

With all the management teams, and with the support of the Board of Directors, we are fully mobilized and determined to ensure the Group's long-term future.


James F Collins
Chairman and Chief Executive Officer